Sharad Malhotra, Managing Director, Nippon Paint (India) Group
The sharp rise in crude oil prices, along with the aggressive pricing strategies adopted by new entrants, has put significant pressure on margins across the paint industry. With key raw material costs closely linked to crude derivatives, input cost inflation has emerged as a major challenge, while rising inflation has also begun to weigh on demand sentiment. Sharad Malhotra, Managing Director, Nippon Paint (India) Group shares his perspective on the evolving challenges and the way forward for the company, including M&A to expand its portfolio and capabilities. Excerpt:
Do you expect demand to slowdown this fiscal given the inflation concern?
Inflationary pressures do create short-term caution in consumer spending, but the long-term fundamentals of the paint industry remain strong. Urbanisation, housing demand, infrastructure development, and a steadily shortening repaint cycle continue to support category growth. India remains a structurally high-growth market for us. There may be temporary fluctuations across quarters, but the overall consumption trajectory continues to be positive. Our strategy remains focused on long-term market development rather than reacting to short-term cycles.
